The present invention relates to a novel process for the preparation of 2-(1-hydroxyalkyl)-5,5-diphenylhydantoin, or simply 2-hydroxyalkylphenytoin. This compound is a very important intermediate in the preparation of phenytoin prodrug. U.S. Pat. No. 4,163,058 describes the preparation of this intermediate. The given procedure calls for large amounts of solvent, e.g., water, to solubilize the reactants. The low solubility of phenytoin in water creates an immediate inconvenience due to large volume of solvent and prolonged reaction period.